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EPLI - Employment Practices Liability Insurance

If you have employees, you have Employment Practices Liability (EPLI) exposures. Your exposures are generally excluded under your General Liability policy. Without an EPLI policy, you are responsible for defense costs and judgements.

EPLI claims have been increasing. The annual costs related to defending the claims continues to escalate.

The complexity of the exposures and the ongoing evolution of court decisions make this an exposure that is difficult to manage. You need to have experts available to protect your interests

EPLI Exposures

EPLI exposures come from past judicial decisions, common law, and a number of laws. A short review of these exposures is needed for your recognizing the need for this insurance.

EPLI is designed to provide coverage for the following common law exposures. Court decisions have shaped the legal landscape for these issues.

  • Discrimination

  • Wrongful Termination

  • Sexual Harassment

  • Retaliation

  • Inappropriate employment conduct

Statutes that are related to employment can also create an EPLI exposure for an employer. A short list of major labor related laws include:

  • The Fair Labor Standards Act (FLSA) of 1938

  • The Equal Pay Act of 1963

  • Title VII of the Civil Rights Act of 1964

  • Age Discrimination in Employment Act (ADEA) of 1967)

  • The Pregnancy Discrimination Act (PDA) of 1978

  • The Worker Adjustment and Retraining Notification (WARN) Act of 1988

  • The Civil Rights Act of 1871 (as amended by the Civil Rights Act of 1991)

  • Americans with Disabilities Act (ADA) of 1992

  • Americans with Disabilities Act Amendments Act of 2008 (ADAAA)

  • The Family and Medical Leave Act (FMLA) of 1993

  • The Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994

  • The Genetic Information Nondiscrimination Act (GINA) of 2008

Many of these statutes are complex and defense costs related to a claim can be substantial. EPLI policy forms vary, as it pertains to covering the penalties for violations, but defense costs are generally provided all EPLI coverage forms.

Where to Find EPLI Coverage

EPLI coverage can be found in stand-alone EPLI policies or as part of a management liability policy. There is a limited coverage option available on some Businessowner Policies (BOP).

Standalone EPLI policies may have broader terms of coverage and may also offer risk management services as part of the policy program. The stand-alone policies may be a higher cost than a management liability package. If you have stand-alone EPLI policy, you may need an additional excess limits for your EPLI coverages.

Management liability policies package EPLI with other coverages such as Directors and Officers (D&O), fiduciary liability, kidnap and ransom, and cyber liability. Since these polices share rating data, there is often a price benefit to bundling these coverages.

Some carriers who offer BOP policies may have an endorsement for EPLI available for their BOP product. This is a “claims-made” ELPI endorsement. These endorsements generally have relatively low limits available and may not offer the broadest coverage terms.

The Driehaus Difference

EPLI and management liability policies are not fringe coverages. The laws that create the need for EPLI require access to subject matter experts. EPLI Insurance provides a vital level of protection for your business. Having an agency that understands the marketplace and what coverages are available from which carriers is key to navigating a complex insurance marketplace. This is not a coverage that can be defined in “fifteen minutes saves you 15%” or “just pay for what you need.” Most business owners know they have EPLI exposures, but need professional help in selecting the right protection. We have the experience and skills to help you tailor your coverages to your risks. Call us at 513-977-6860 or reach out to us via our website .


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